This article examines how the statements and rhetoric of former US President Donald Trump impact the stock market and cryptocurrency, altering company valuations by billions in short timeframes.
How Trump's Words Impact Stocks
Trump's rhetoric can significantly affect the stock market. When he speaks out against companies like Netflix or Tesla, sharp fluctuations in stock prices are expected. For instance, his comments on TikTok led to a 6.1% drop in Meta's shares.
Financial Consequences of Rhetoric
When discussing cryptocurrency, Trump can provoke instant changes in the valuation of companies like Coinbase and Binance. For example, after his statements regarding crypto exchanges, Coinbase lost $4.2 billion, equating to approximately 9% of its market cap.
The Future of Business Amid Instability
Considering the long list of financial losses and the grounds under which political rhetoric can affect companies, it is crucial to develop resilient business models. The implementation of blockchain technologies can help minimize risks for businesses.
Companies operating under high instability must create adaptation and liquidity strategies to protect their business from risks associated with political rhetoric.
